Trimester Project Presentation on “The impact of retailers' brands over the producers' brands with special

reference to staples”

Presented By:Karishma Seth (PGDM07028)

Nishtha Singh(PGDM07050)

Introduction of Industry Retailing has been defined as business activities involved in

selling goods and services to consumers for their personal, family or household use.

Retail is the second-largest industry in the United States both in number of establishments and number of employees.

Wal-Mart is the world’s largest retailer.

Retailing in India

Retailing in India is currently estimated to be USD 200 billion. Organized retail is expected to grow at 25-30 percent p.a.,

and is projected to attain US $ 23 billion by 2010. The corner grocer or the ‘ kirana’ store is a key element in the

retail in India due to the housewife’s unwillingness to go long distances for purchasing daily needs.

Convenience and merchandise are the two most important reasons for choosing an organised retail store, the choice criteria varied across product categories.

Factors facilitating the spread of chains are the availability of quality products at lower prices, improved shopping standards, convenient shopping and display.

Continued..

The modernization in retail has led to the decline of independent mom & pop stores.

INTRODUCTION OF THE TOPIC Product brand:Meaning of the product brand is connected to: the products developed by the (national) manufacturers

(manufacturer product brand or industrial brand). the products developed by the retailers (private label, store

brand, distributor brand, own brand, or house brand). Retail brand:Meaning of the retail brand: linked to the points of sale, understood as “retail products” of

the retailers. which incorporate the “personality” of the retail store.

Interaction processes between product brand and retail brand

Product brand Retail brandVertical Brand

Mutual influence between product brand and retail brand.

Interaction between product loyalty and store loyalty.

What drives the penetration of private labels?

The Manufacturer The Retailer The Shopper

What Works Against Private Label Penetration ?

Two factors seem to drive this situation: relative cost and risk. In the case of baby food and cosmetics, the relative risk seems

high even if the price differential is large. The degree of commoditization of the product is also an important

factor. The closer an item is to a commodity, the greater the opportunity it has to be matched or pre-empted by private labels.

In large part this is why refrigerated foods (e.g., dairy products and meat) have large private label shares, while highly sophisticated electronics products have virtually none (though Wal-Mart does offer its own TV brand).

Objectives of the Study To identify the various private brands of the retailers in the

“staples” category. To study the various promotions of the private retailers of their

own brands in comparison to the manufacturers’ brands. To study the price differentials between the retailers’ private

brands and the manufacturers’ brands and their impact on the consumer behavior.

To determine the variables that consumer foresees prior to subscribe retailers’ brands.

Scope

The scope of the study is to: Promote the private brands of retailers by demarketing

the manufacturers’ brands. Penetration of the private brands in the national brands’

markets. Developing of a better image in consumer’s mind.

Research Methodology Universe: Consumers of the retail sector. Sample Unit: Consumers of the organized retail-sector. Sample Size: 50 Sample Type: Random sampling Research Design: Exploratory Sources of Data: Primary (Questionnaire) Secondary (Retail blogs, journals, newspaper)

Data analysis

From where do you buy your grocery items?

Data analysis

How much is the budget reserved for spending on grocery by the consumer?

Data analysis

What matters most to the consumers in the case of purchasing of grocery items?

Data analysis

Do you prefer the same brand everytime?

Data analysis

How much the promotion of the product influence your purchasing?

Data analysis

Who is responsible in your family to buy the monthly grocery items?

Data analysis

Do you but grocery items from big retailers?

Data analysisIf Yes, from which retailer do you buy frequently?

Data analysis

What appeals you more in such retail stores?

Data analysis

Which type of product do you purchase while shopping from an organized retail store?

Data analysis

If the retailer’s own brands are available at a shop next door, then will you buy it?

Recommendations

If the organized retailers promote their products at the mom-pop stores, then the consumers would consider them in their buying decision making.

Since the survey shows that there is no significant difference between the customers of organized retailers and unorganized retailers, hence the organized retailers should launch and promote their brand at the same grand level as the manufacturers’ brand .

The survey shows that Quality plays a major role in consumer’s buying decision. Therefore the retailer should not compromise on this factor beside the price of its brand.

Conclusion

The consumers prefer to buy the product brand rather than the retailers brand but they give preference to the factor of Quality the highest in their buying decisions. Hence, in order to compete with the products’ brand , the retailers brand should play upon quality and not price or promotion.